In reply to a parliamentary question submitted by the Democratic Alliance (DA), Minister of Trade and Industry Rob Davies has this morning contradicted comments made by National Youth Development Agency (NYDA) executive chairperson, Andile Lungisa, regarding the budget of the shambolic totalitarian youth festival hosted by the NYDA in December last year.

A copy of the reply follows below.

In his response, Minister Davies states that the National Lotteries Board, which provided the NYDA with a R40 million grant for the event, requires a range of supporting material to be submitted with a grant application, including a project budget. He also stated that the NYDA submitted its application on 11 November 2010. 

However, a week after this supposed submission date, Lungisa, who is also the ANC Youth League’s (ANCYL) deputy president, denied that a budget for the event had been finalized.

On 21 November 2010, the NYDA Chairperson was quoted in the Sunday Times as saying that the total bill for the youth festival was likely to be in the region of R370 million. Yet, when subsequently questioned by Die Burger, Lungisa stated that the actual cost would only be calculated after the event had taken place: 

“Ons sal dit eers weet nadat ons die fees aangebied het, soos die geval ook was ná die Wêreld-beker-toernooi.”
[“We will only know that after we have hosted the festival, as was the case after the World Cup”]

There are two possible explanations for this contradiction, both of which are profoundly problematic. Either the NYDA’s chairperson sought to mislead the public by claiming that the budget for the event had not yet been completed, or the National Lotteries Board afforded the NYDA special treatment and allocated the R40 million grant without the necessary supporting documentation. 

The DA will be writing to Minister Davies, and the National Lotteries Board, to request access to the budget presented by the NYDA as part of its grant application. In addition, the DA will be writing to the Minister in the Presidency, Collins Chabane, to request a full explanation of Mr Lungisa’s comments, and how they can be reconciled with the facts contained in Minister Davies’ parliamentary reply. 

 THE NATIONAL ASSEMBLY 
 QUESTION FOR WRITTEN REPLY Question 655
The Leader of the Opposition (DA) to ask the Minister of Trade and Industry:

(1) On what grounds were the National Youth Development Agency (NYDA) allocated a R40 million grant by the National Lotteries Board for hosting the World Festival of Youth and Students;
(2) what (a) criteria does the National Lotteries Board use for allocating grants and (b) is the usual time frame between a funding request being received and a grant being approved;
(3) (a) on what date did the NYDA submit its request for funding for the World Festival of Youth and Students to the National Lotteries Board and (b) in whose name was the request submitted? NW701E
Response:

(1) According to the NLB, the NYDA made an application to the Miscellaneous Purposes category of the National Lottery Distribution Trust Fund, which was duly considered and a grant was allocated.

(2)(a) According to the NLB, each application is considered on its own merit with the qualifying criteria for all applicants being the following:
• Complete prescribed application form
• Proof of registration as a non-profit organisation
• Constitution or founding documents
• Annual financial statements drawn up by an independent accounting officer registered with a recognised professional body
• Project implementation plan
• Project budget

(2)(b) Since the Miscellaneous Purposes category does not make a public call for applications, the number of applications received is minimal and the turnaround time very short. The adjudication of the applications is dependent on the Committee of the Board being available to review Miscellaneous Purposes applications.

(3)(a) 11 November 2010

(3)(b) National Youth Development Agency